This public expenditure review is produced jointly by the World Bank and the Inter-American Development Bank, and focuses on social sectors spending and leaves aside infrastructure and other sectors. This report, finalized in June 2002 and discussed with Authorities in mid-August 2002, does not take into account policy developments occurring after this time. The report is organized as follows:
- Chapter 1 presents a synthesis of Peru's public expenditure reform agenda from the Bank's perspective. It is based on, and distills, the thematic chapters that make up this report.
- Chapter s 2-4 examine the core functions of public expenditure management: macro fiscal aggregates, resource allocations to strategic sectors, and microeconomic efficiency of public spending.
- Chapter s 5-8 explore selected themes, such as the decentralization of public administration and the social sectors
civil service reform
governance and corruption
and and mining fiscal and environmental issues. These chapters are, in turn, supported by fifteen topic-specific background papers, including an innovative public expenditure tracking survey on municipal transfers. Other topics focus on public sector employment
decentralization of health and education
an empirical diagnostic study on governance, rule of law, and corruption
and a comparison of the Peruvian tax system with mining tax systems in other nations.